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PTR (Price to Retailer)

The price a stockist charges a retail pharmacy for a pack, quoted exclusive of GST.

PTR is the number a chemist's purchase invoice is built on. By trade convention it is quoted **exclusive of GST** — the tax is added on top on the invoice. That single convention is the source of most margin arithmetic errors in Indian pharmacy, because MRP is quoted the other way round: MRP is inclusive of GST, since it caps what a patient can be charged.

Working backwards from MRP therefore takes two steps, not one. You strip the GST, then strip the retail margin. At a 20% margin and 5% GST, a ₹100 MRP pack has a PTR of ₹79.37 — not the ₹83.33 you get from the commonly published shortcut of dividing MRP by 1.20, which skips GST entirely and runs about 5% high.

PTR is also the cost basis for two things beyond purchasing: gross margin per pack, and the GST input credit claimed on that purchase. A pack bought close to MRP leaves very little once expiry write-offs and locked working capital are counted, which is why margin and expiry are the same conversation in practice rather than two separate ones.

The 20% figure is a trade convention, not a statutory rate. Products under DPCO price control, and most PCD or franchise arrangements, work on different margins — always reconcile against your own purchase invoice rather than a published rule of thumb.

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Related terms

PTS (Price to Stockist)The price a manufacturer or marketing company charges the stockist, before GST. MRP (Maximum Retail Price)The maximum price at which a pack may be sold to a patient, inclusive of all taxes. DPCO (Drugs Prices Control Order)The order under which the government fixes ceiling prices for scheduled medicines. HSN codeThe Harmonised System of Nomenclature code that determines a product's GST treatment. Scheme goods (free goods)Extra units supplied free with a purchase, lowering the effective cost per unit.

All terms

Batch numberBreakage and damageCDSCOCGST, SGST and IGSTCold chainCredit noteDPCO (Drugs Prices Control Order)Drug licence (Form 20 / Form 21)Expiry returnFEFO (First Expiry First Out)Generic vs branded medicineGSTR-1GSTR-3BHSN codeInput tax credit (ITC)Loose sale (cut strip)MRP (Maximum Retail Price)Narcotic registerNear-expiry stockNPPAPack factor (units per pack)Pharmacist registrationPTR (Price to Retailer)PTS (Price to Stockist)Purchase invoiceRed-border warning labelReorder levelRetail vs wholesale drug licenceReturn to vendor (RTV)Rule 65Rx symbolSalt compositionSchedule HSchedule H1Schedule XScheme goods (free goods)Shortbook (short book)Stock rotationStockist

This glossary is a practical reference for Indian retail pharmacy, not legal, tax or clinical advice. Requirements under the Drugs & Cosmetics Rules are enforced by state drug control authorities and vary; GST treatment should be confirmed with your CA. Verify anything you intend to rely on against the current notified position. As of August 2026.